'Rent controls will destroy PRS growth'
Published by Max Salsbury for 24dash.com in Housing
Westminster negotiates lower private rents on former council flats
Rent controls would "critically damage" any prospects of growth in the Welsh private rented sector, according to the Residential Landlords Association.
In response to Ed Miliband’s plans to introduce rent caps in the PRS and ban excessive letting agent fees, the RLA is writing to all political parties in the Welsh Assembly to seek assurances that they will not introduce such a policy in Wales.
The RLA argues that introducing rent controls would leave many tenants in Wales worse off, claiming that rents across the country are increasing by much less than inflation as measured by both CPI and RPI.
Douglas Haig, RLA director for Wales, said: “Whilst it is good to see a debate being held on the role that the private rented sector has to play in meeting the country’s housing needs, it is vital that it is based on fact and not populism.
“All the evidence clearly shows that rent controls critically undermine investment in new homes to rent and are not needed given that official statistics show that rents are increasing by less than inflation.
“I am therefore writing to all parties in the Welsh Assembly to seek reassurances that they do not intend to adopt a similar path for Wales which would be against the interests of tenants.”